{"id":893,"date":"2026-08-25T09:00:00","date_gmt":"2026-08-25T09:00:00","guid":{"rendered":"https:\/\/azulbusinessadvisors.com\/?p=893"},"modified":"2026-10-22T12:00:27","modified_gmt":"2026-10-22T12:00:27","slug":"sba-lenders-business-acquisition","status":"publish","type":"post","link":"https:\/\/amerivestgroup.com\/en\/sba-lenders-business-acquisition\/","title":{"rendered":"What SBA Lenders Are Looking for in 2026 \u2014 and What Changes on October 1"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"893\" class=\"elementor elementor-893\" wpc-filter-elementor-widget=\"1\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-36ebcd9 e-con-full e-flex e-con e-parent\" data-id=\"36ebcd9\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-0520631 elementor-widget elementor-widget-heading\" data-id=\"0520631\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">What SBA Lenders Are Looking for in 2026 \u2014 and What Changed on October 1<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8d7f900 elementor-widget elementor-widget-text-editor\" data-id=\"8d7f900\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h5>A Practical Guide for Business Buyers and Sellers<\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-4a20abb e-flex e-con-boxed e-con e-parent\" data-id=\"4a20abb\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-fb57be2 e-con-full e-flex e-con e-child\" data-id=\"fb57be2\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ce4afdf elementor-widget elementor-widget-text-editor\" data-id=\"ce4afdf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p style=\"margin-bottom:20px\"><strong>On October 1, 2026, the SBA changed how business acquisitions are underwritten. The cost of that change does not land on the buyer&rsquo;s odds of approval. It lands on your price.<\/strong><\/p><p style=\"margin-bottom:20px\">SBA 7(a) loans remain the most common way a business under $5 million actually gets bought in this country. That has not changed. What changed on October 1 is how much of a purchase price a given set of earnings can carry &mdash; and which buyer gets the benefit of the doubt.<\/p><p style=\"margin-bottom:20px\">Whether you are <strong>a buyer looking to acquire a business<\/strong> or <strong>a seller preparing to go to market<\/strong>, what SBA lenders care about can make or break the deal. The new rules make that more true, not less.<\/p><p>Here is what is now in effect, and what it means for your deal.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-371671b e-flex e-con-boxed e-con e-parent\" data-id=\"371671b\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-20dfd0f e-con-full e-flex e-con e-child\" data-id=\"20dfd0f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6a121cf elementor-widget elementor-widget-heading\" data-id=\"6a121cf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">I. Why SBA Loans Matter<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b170d7f elementor-widget elementor-widget-text-editor\" data-id=\"b170d7f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p data-start=\"776\" data-end=\"985\">Over 60% of main street business acquisitions under $5M are financed in part with SBA loans, according to industry data from the <strong data-start=\"905\" data-end=\"913\">IBBA<\/strong> and <strong data-start=\"918\" data-end=\"955\">Pepperdine Capital Markets Report<\/strong>. These loans allow buyers to:<\/p><ul data-start=\"987\" data-end=\"1195\"><li data-start=\"987\" data-end=\"1032\"><p data-start=\"989\" data-end=\"1032\">Leverage 75-90% of the total purchase price<\/p><\/li><li data-start=\"1033\" data-end=\"1076\"><p data-start=\"1035\" data-end=\"1076\">Preserve working capital post-acquisition<\/p><\/li><li data-start=\"1077\" data-end=\"1126\"><p data-start=\"1079\" data-end=\"1126\">Access longer amortization (typically 10 years)<\/p><\/li><li data-start=\"1127\" data-end=\"1195\"><p data-start=\"1129\" data-end=\"1195\">Potentially include working capital and equipment in the same loan<\/p><\/li><\/ul><p data-start=\"1197\" data-end=\"1312\">For sellers, SBA lending expands the pool of serious, qualified buyers \u2014 and can support a faster, cleaner closing.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-2ec22d7 e-flex e-con-boxed e-con e-parent\" data-id=\"2ec22d7\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-12f0609 elementor-widget elementor-widget-heading\" data-id=\"12f0609\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">II. What SBA Lenders Want to See<\/h2>\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-1859164 e-con-full e-flex e-con e-child\" data-id=\"1859164\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-1f1b002 e-con-full e-flex e-con e-child\" data-id=\"1f1b002\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-46f4728 e-con-full e-flex e-con e-child\" data-id=\"46f4728\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-e2f9d77 e-con-full e-flex e-con e-child\" data-id=\"e2f9d77\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-228edce elementor-widget elementor-widget-heading\" data-id=\"228edce\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">For Buyers<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eaad7c6 elementor-widget elementor-widget-heading\" data-id=\"eaad7c6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\">SBA lenders underwrite you, not just the business. <\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-b97982e e-con-full e-flex e-con e-child\" data-id=\"b97982e\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-fe0d302 elementor-widget elementor-widget-text-editor\" data-id=\"fe0d302\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p data-start=\"1364\" data-end=\"1453\">SBA lenders underwrite <strong data-start=\"1387\" data-end=\"1394\">you<\/strong>, not just the business. Here\u2019s what they focus on in 2026:<\/p><h6 data-start=\"1455\" data-end=\"1485\">1. Relevant Experience<\/h6><p>Buyers don\u2019t necessarily need direct industry experience, but lenders want confidence that you can operate the business. Transferable skills, a business management background, or a willingness to retain key staff all help.<\/p><blockquote><p>Tip: Prepare a short \u201cbuyer resume\u201d or personal bio summarizing your experience.<\/p><\/blockquote><h6 data-start=\"1796\" data-end=\"1836\">2. Good Credit and Clean History<\/h6><p data-start=\"1837\" data-end=\"1972\">Most lenders want to see a <strong data-start=\"1864\" data-end=\"1888\">FICO score above 680<\/strong> and a clean history of bankruptcies, foreclosures, or defaults on government loans.<\/p><h6 data-start=\"1974\" data-end=\"2024\">3. Liquidity for Down Payment and Reserves<\/h6><p data-start=\"2025\" data-end=\"2211\">Expect to contribute at least <strong data-start=\"2055\" data-end=\"2088\">10% of the total project cost<\/strong> (more for riskier deals). You\u2019ll also need post-closing liquidity to show you won\u2019t be cash-strapped once the deal closes.<\/p><h6 data-start=\"2213\" data-end=\"2247\">4. Personal Debt-to-Income<\/h6><p data-start=\"2248\" data-end=\"2417\">Your personal debt shouldn\u2019t be too high. Lenders want to see that your new business income will reasonably support any personal obligations (mortgage, car loans, etc.).<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-a063c76 e-con-full e-flex e-con e-child\" data-id=\"a063c76\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-b42c6ce e-con-full e-flex e-con e-child\" data-id=\"b42c6ce\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-34012a4 e-con-full e-flex e-con e-child\" data-id=\"34012a4\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4a849f9 elementor-widget elementor-widget-heading\" data-id=\"4a849f9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">For Sellers<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0723eaf elementor-widget elementor-widget-heading\" data-id=\"0723eaf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\">Even if a buyer is strong, a lender will still closely evaluate the business being acquired.<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-1deb7aa e-con-full e-flex e-con e-child\" data-id=\"1deb7aa\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3ca49cd elementor-widget elementor-widget-text-editor\" data-id=\"3ca49cd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p style=\"margin-bottom:20px\">Even if a buyer is strong, a lender will still closely evaluate the business being acquired.<\/p><p style=\"margin-bottom:20px\">Here is what makes a business SBA-lendable in 2026:<\/p><h6 style=\"margin:24px 0 8px;\">1. Clean Financials (Tax Returns Matter)<\/h6><p style=\"margin-bottom:20px\">SBA lenders <strong>underwrite off tax returns<\/strong>, not just internal P&amp;Ls. Add-backs (like owner salary or personal expenses) must be reasonable and clearly documented.<\/p><blockquote style=\"margin-bottom:20px\"><p><em>Tip: Three years of filed tax returns with consistent SDE (seller&rsquo;s discretionary earnings) are a must.<\/em><\/p><\/blockquote><h6 style=\"margin:24px 0 8px;\">2. Adequate Cash Flow<\/h6><p style=\"margin-bottom:20px\">Since <strong>October 1, 2026<\/strong>, the SBA requires <a href=\"https:\/\/finance-check.amerivestgroup.com\" target=\"_blank\" rel=\"noopener\">debt service coverage<\/a> of at least <strong>1.25x<\/strong> for first-time acquisitions and owner buyouts, measured on the last fiscal year or an average of the last two. Business expansions, where a company buys another in its own industry, stay at 1.15x. See section III below.<\/p><h6 style=\"margin:24px 0 8px;\">3. Owner Independence<\/h6><p style=\"margin-bottom:20px\">A business that relies entirely on the seller&rsquo;s relationships or daily involvement raises flags. Lenders prefer to see a competent team and systems that can transfer.<\/p><h6 style=\"margin:24px 0 8px;\">4. Legal &amp; Compliance Readiness<\/h6><p>Missing licenses, questionable contracts, or unresolved tax issues can delay or kill deals. Clean documentation matters.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-14f3d35 e-flex e-con-boxed e-con e-parent\" data-id=\"14f3d35\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-00a6dfc elementor-widget elementor-widget-heading\" data-id=\"00a6dfc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">III. What Changed on October 1, 2026<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-411f9c6 elementor-widget elementor-widget-text-editor\" data-id=\"411f9c6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<div style=\"background:#f5f6f8;border:1px solid #e2e4e8;border-radius:4px;padding:14px 18px;font-size:14px;color:#5b6470;margin-bottom:20px;\">SBA issued SOP 50 10 8.1 on August 14, 2026 and a technical update on September 25, 2026 (Information Notices 5000-880695 and 5000-882227). Both took effect October 1, 2026. The summary below reflects the SOP text as updated. Confirm the specifics with your lender before you structure a transaction around them.<\/div><p style=\"margin-bottom:20px\">The new rulebook is SOP 50 10 8.1. It applies to applications SBA received on or after October 1, 2026. Applications submitted through September 30 stay under the prior SOP, 50 10 8.<\/p><div style=\"overflow-x:auto;-webkit-overflow-scrolling:touch;margin:16px 0px;border:1px solid #e2e4e8;border-radius:4px;\"><table style=\"width:100%;min-width:620px;border-collapse:collapse;table-layout:fixed;margin:0;\"><colgroup><col style=\"width:34%\"><col style=\"width:33%\"><col style=\"width:33%\"><\/colgroup><thead><tr><th style=\"background:#173b5e;color:#ffffff;text-align:left;padding:12px 14px;font-weight:600;\">Requirement<\/th><th style=\"background:#173b5e;color:#ffffff;text-align:left;padding:12px 14px;font-weight:600;\">Before Oct 1, 2026<\/th><th style=\"background:#173b5e;color:#ffffff;text-align:left;padding:12px 14px;font-weight:600;\">Since Oct 1, 2026<\/th><\/tr><\/thead><tbody><tr style=\"background:#f5f6f8;\"><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Coverage &mdash; first-time acquisition<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">1.15x<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\"><strong>1.25x, historical or adjusted<\/strong><\/td><\/tr><tr style=\"background:#ffffff;\"><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Coverage &mdash; expansion, same industry<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">1.15x<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">1.15x &mdash; unchanged<\/td><\/tr><tr style=\"background:#f5f6f8;\"><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Coverage &mdash; owner \/ partner buyout<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">1.15x<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\"><strong>1.25x<\/strong><\/td><\/tr><tr style=\"background:#ffffff;\"><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Projections<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Could support a cash-flow shortfall<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\"><strong>Cannot substitute for historical cash flow<\/strong><\/td><\/tr><tr style=\"background:#f5f6f8;\"><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Minimum equity injection<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">10%<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">10%; cannot be reduced for a first-time acquisition. Lender may reduce or waive for expansions and owner buyouts<\/td><\/tr><tr style=\"background:#ffffff;\"><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Seller debt toward equity<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Full standby for life of loan; no more than half the injection<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Unchanged<\/td><\/tr><tr style=\"background:#f5f6f8;\"><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Quality of Earnings report<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Not required<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\"><strong>Required at $3M+ business purchase price (first-time acquisitions and expansions)<\/strong><\/td><\/tr><tr style=\"background:#ffffff;\"><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Total debt<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">&mdash;<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\"><strong>Capped at the business valuation<\/strong><\/td><\/tr><tr style=\"background:#f5f6f8;\"><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">7(a) Small and SBA Express<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Available<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\"><strong>Still available, under the same coverage and due diligence rules<\/strong><\/td><\/tr><tr style=\"background:#ffffff;\"><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Seller transition period<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Up to 12 months<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\"><strong>Up to 24 months<\/strong><\/td><\/tr><tr style=\"background:#f5f6f8;\"><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Seller note seasoning before refinance<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">24 months<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\"><strong>36 months<\/strong><\/td><\/tr><tr style=\"background:#ffffff;\"><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Acquisition amortization<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\">Blended with real estate<\/td><td style=\"padding:11px 14px;border-top:1px solid #e2e4e8;vertical-align:top;\"><strong>10 years, no balloon; RE portion to 25<\/strong><\/td><\/tr><\/tbody><\/table><\/div><h3 style=\"margin:28px 0 10px;\">The coverage change, in dollars<\/h3><p style=\"margin-bottom:20px\">A debt service coverage ratio is the test of whether earnings cover the loan payment with room to spare. Moving the floor from 1.15x to 1.25x sounds incremental. Run it as division and it is not.<\/p><div style=\"background: #fdf6ec; border-left: 5px solid #d97706; padding: 20px 24px; border-radius: 4px; margin: 8px 0 20px;\"><strong style=\"color: #d97706; font-size: 12px; letter-spacing: 1.5px; text-transform: uppercase;\">Key Point<\/strong><div style=\"margin-top: 8px; color: #444; font-style: italic;\">1.15 &divide; 1.25 = 0.92. The same adjusted earnings now support roughly <strong>8% less debt<\/strong> than they did on September 30 &mdash; no assumption about interest rates required. On a $3 million transaction financed at 90%, that is about $216,000. The buyer brings it in cash, or the price absorbs it.<\/div><\/div><p style=\"margin-bottom:20px\">And the shortfall can no longer be argued away. Under the new SOP a lender may not lean on post-closing projections to bridge a gap in historical cash flow. Coverage has to be demonstrated on the last fiscal year, or an average of the last two, on a historical or adjusted basis. The growth story a buyer tells about your business stops being a financing input.<\/p><h3 style=\"margin:28px 0 10px;\">The lane that stays at 1.15x<\/h3><p style=\"margin-bottom:20px\">The 1.15x floor did not disappear. It survives for exactly one kind of buyer: a company that has operated for at least two full fiscal years under its current owners, in the same four-digit NAICS industry group, buying 100% of yours as an expansion. That buyer can also have the 10% equity requirement reduced or waived by the lender. A first-time buyer cannot.<\/p><p style=\"margin-bottom:20px\">Read that against the table above and the consequence is uncomfortable. Since October 1, the SBA effectively underwrites the same business at two different prices depending on who is buying it. A first-time owner-operator has to clear 1.25x. A competitor down the street &mdash; or a private-equity-backed platform already operating in your category &mdash; clears at 1.15x, and carries roughly 8% more debt against an identical P&amp;L.<\/p><p style=\"margin-bottom:20px\">For a decade the individual buyer with an SBA pre-qualification has been the default buyer for a business in this size range. Since October 1, that buyer&rsquo;s ceiling sits below the strategic buyer&rsquo;s ceiling, on the same set of books.<\/p><div style=\"background: #eef3f9; border-left: 5px solid #1B4F8A; padding: 20px 24px; border-radius: 4px; margin: 8px 0 20px;\"><strong style=\"color: #1b4f8a; font-size: 12px; letter-spacing: 1.5px; text-transform: uppercase;\">Amerivest Tip<\/strong><div style=\"margin-top: 8px; color: #444; font-style: italic;\">A buyer with a higher borrowing ceiling only pays you for it if someone else is bidding. The competitor who knows he is the only qualified buyer at the table has no reason to spend his advantage on your behalf &mdash; and every reason to spend it on his own.<\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bc96d95 elementor-widget elementor-widget-n-accordion\" data-id=\"bc96d95\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;default_state&quot;:&quot;expanded&quot;,&quot;max_items_expended&quot;:&quot;one&quot;,&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:400,&quot;sizes&quot;:[]}}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1970\" class=\"e-n-accordion-item\" open>\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"true\" aria-controls=\"e-n-accordion-item-1970\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h6 class=\"e-n-accordion-item-title-text\"> The $3 million Quality of Earnings requirement <\/h6><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-far-arrow-alt-circle-up\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M256 504c137 0 248-111 248-248S393 8 256 8 8 119 8 256s111 248 248 248zm0-448c110.5 0 200 89.5 200 200s-89.5 200-200 200S56 366.5 56 256 145.5 56 256 56zm20 328h-40c-6.6 0-12-5.4-12-12V256h-67c-10.7 0-16-12.9-8.5-20.5l99-99c4.7-4.7 12.3-4.7 17 0l99 99c7.6 7.6 2.2 20.5-8.5 20.5h-67v116c0 6.6-5.4 12-12 12z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-far-arrow-alt-circle-down\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M256 8C119 8 8 119 8 256s111 248 248 248 248-111 248-248S393 8 256 8zm0 448c-110.5 0-200-89.5-200-200S145.5 56 256 56s200 89.5 200 200-89.5 200-200 200zm-32-316v116h-67c-10.7 0-16 12.9-8.5 20.5l99 99c4.7 4.7 12.3 4.7 17 0l99-99c7.6-7.6 2.2-20.5-8.5-20.5h-67V140c0-6.6-5.4-12-12-12h-40c-6.6 0-12 5.4-12 12z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1970\" class=\"elementor-element elementor-element-6aefd5a e-con-full e-flex e-con e-child\" data-id=\"6aefd5a\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1970\" class=\"elementor-element elementor-element-52bc390 e-flex e-con-boxed e-con e-child\" data-id=\"52bc390\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-22d7423 elementor-widget elementor-widget-text-editor\" data-id=\"22d7423\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p style=\"margin-bottom:20px\">First-time acquisitions and business expansions with a business purchase price of $3 million or more now require a Quality of Earnings report in addition to the business valuation. Owner-occupied real estate is excluded from the threshold, so it is measured on what the operating business itself is being sold for.<\/p><p style=\"margin-bottom:20px\">Three details matter more than the requirement itself:<\/p><ul style=\"margin-bottom:20px\"><li style=\"margin-bottom:10px\"><strong>It is done for the lender.<\/strong> The report is performed for the lender&rsquo;s benefit and can never be prepared by or for the seller. A QoE the buyer commissioned earlier can be used, but only after one of the lender&rsquo;s approved reviewers has checked it.<\/li><li style=\"margin-bottom:10px\"><strong>Its numbers drive the loan.<\/strong> The normalized earnings the QoE lands on are what the coverage calculation runs against. If the report cuts your add-backs, the supportable loan comes down with them. If coverage on those numbers does not support the valuation and the debt, the loan is reduced.<\/li><li style=\"margin-bottom:10px\"><strong>It does not reach every deal.<\/strong> Owner buyouts and ESOP or cooperative purchases are exempt by the SOP&rsquo;s own terms. Both still carry the 1.25x floor &mdash; exempt from the report is not exempt from the coverage test.<\/li><\/ul><div style=\"background: #eef3f9; border-left: 5px solid #1B4F8A; padding: 20px 24px; border-radius: 4px; margin: 8px 0 20px;\"><strong style=\"color: #1b4f8a; font-size: 12px; letter-spacing: 1.5px; text-transform: uppercase;\">Rule of Thumb<\/strong><div style=\"margin-top: 8px; color: #444; font-style: italic;\">Below $3 million of business purchase price, your add-backs are argued. At $3 million and above, they are tested &mdash; by a firm working for the lender, not for you.<\/div><\/div><p>An add-back schedule that survives a friendly conversation with a buyer is a different document from one that survives a reconstruction of cash receipts against bank statements and tax returns. If your price is built on the first, the new rule tests it against the second.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1971\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1971\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h6 class=\"e-n-accordion-item-title-text\"> Seller notes, transition period, and amortization <\/h6><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-far-arrow-alt-circle-up\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M256 504c137 0 248-111 248-248S393 8 256 8 8 119 8 256s111 248 248 248zm0-448c110.5 0 200 89.5 200 200s-89.5 200-200 200S56 366.5 56 256 145.5 56 256 56zm20 328h-40c-6.6 0-12-5.4-12-12V256h-67c-10.7 0-16-12.9-8.5-20.5l99-99c4.7-4.7 12.3-4.7 17 0l99 99c7.6 7.6 2.2 20.5-8.5 20.5h-67v116c0 6.6-5.4 12-12 12z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-far-arrow-alt-circle-down\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M256 8C119 8 8 119 8 256s111 248 248 248 248-111 248-248S393 8 256 8zm0 448c-110.5 0-200-89.5-200-200S145.5 56 256 56s200 89.5 200 200-89.5 200-200 200zm-32-316v116h-67c-10.7 0-16 12.9-8.5 20.5l99 99c4.7 4.7 12.3 4.7 17 0l99-99c7.6-7.6 2.2-20.5-8.5-20.5h-67V140c0-6.6-5.4-12-12-12h-40c-6.6 0-12 5.4-12 12z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1971\" class=\"elementor-element elementor-element-dee9c75 e-con-full e-flex e-con e-child\" data-id=\"dee9c75\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1971\" class=\"elementor-element elementor-element-4880656 e-flex e-con-boxed e-con e-child\" data-id=\"4880656\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-26aefb6 elementor-widget elementor-widget-text-editor\" data-id=\"26aefb6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p style=\"margin-bottom:20px\">The 10% minimum equity injection stays the standard for business acquisitions. Structured seller participation stays available &mdash; but on the same terms it already carried, which sellers consistently underestimate.<\/p><ul style=\"margin-bottom:20px\"><li style=\"margin-bottom:10px\"><strong>Seller debt counts toward equity only on full standby for the life of the SBA loan<\/strong> &mdash; no principal, no interest, for the full term. Not two years. The whole loan.<\/li><li style=\"margin-bottom:10px\"><strong>And it covers at most half the injection.<\/strong> On a 10% requirement, a standby seller note can carry 5 points. The buyer still has to produce the other 5 in genuine cash.<\/li><li style=\"margin-bottom:10px\"><strong>A seller note now has to season 36 months<\/strong>, up from 24, before it can be refinanced out.<\/li><\/ul><p style=\"margin-bottom:20px\">Two changes cut the other way for a seller. The transition period a seller can stay on as a consultant doubles from 12 months to 24 &mdash; useful in any business where the relationships, the licenses, or the institutional knowledge sit with the owner. A longer runway to hand those over is a real answer to the owner-dependency discount, not a cosmetic one.<\/p><p>Against that, the acquisition portion of a 7(a) is capped at a 10-year amortization with no balloon. Only a real estate portion may run longer, up to 25 years, blended across the loan. One exception: an owner-occupied special-purpose property, such as a hotel or self-storage facility, can run up to 25 years when it is 85% or more of the project cost. On a deal carrying meaningful owner-occupied real estate, the monthly payment goes up &mdash; and a higher payment meets a higher coverage floor from the same direction.<\/p><p>One more rule sellers miss: the SOP prohibits seller earnouts in SBA-financed acquisitions.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1972\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1972\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h6 class=\"e-n-accordion-item-title-text\"> What this means for your timeline <\/h6><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-far-arrow-alt-circle-up\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M256 504c137 0 248-111 248-248S393 8 256 8 8 119 8 256s111 248 248 248zm0-448c110.5 0 200 89.5 200 200s-89.5 200-200 200S56 366.5 56 256 145.5 56 256 56zm20 328h-40c-6.6 0-12-5.4-12-12V256h-67c-10.7 0-16-12.9-8.5-20.5l99-99c4.7-4.7 12.3-4.7 17 0l99 99c7.6 7.6 2.2 20.5-8.5 20.5h-67v116c0 6.6-5.4 12-12 12z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-far-arrow-alt-circle-down\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M256 8C119 8 8 119 8 256s111 248 248 248 248-111 248-248S393 8 256 8zm0 448c-110.5 0-200-89.5-200-200S145.5 56 256 56s200 89.5 200 200-89.5 200-200 200zm-32-316v116h-67c-10.7 0-16 12.9-8.5 20.5l99 99c4.7 4.7 12.3 4.7 17 0l99-99c7.6-7.6 2.2-20.5-8.5-20.5h-67V140c0-6.6-5.4-12-12-12h-40c-6.6 0-12 5.4-12 12z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1972\" class=\"elementor-element elementor-element-bfffffa e-con-full e-flex e-con e-child\" data-id=\"bfffffa\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1972\" class=\"elementor-element elementor-element-8c7c622 e-flex e-con-boxed e-con e-child\" data-id=\"8c7c622\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2d4fae3 elementor-widget elementor-widget-text-editor\" data-id=\"2d4fae3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p style=\"margin-bottom:20px\">There are three positions to be in now, and they call for different decisions.<\/p><h4 style=\"margin:24px 0 8px;\">Under LOI or in diligence<\/h4><p style=\"margin-bottom:20px\">Ask the buyer&rsquo;s lender which SOP the file is under. Applications SBA received through September 30 stay under the prior rules; anything submitted since is underwritten at 1.25x on historical earnings. A deal priced against 1.15x may not survive the arithmetic, and it is better to find that out now than in week nine of diligence.<\/p><h4 style=\"margin:24px 0 8px;\">Going to market in the next year<\/h4><p style=\"margin-bottom:20px\">Price against 1.25x from the start rather than discovering it in underwriting. A deal that gets re-traded in week nine of diligence rarely comes back to its original number. The 24-month transition period and the expansion buyer&rsquo;s 1.15x lane are things to plan around rather than react to. Which buyer you are built to attract is now a pricing decision, not just a marketing one.<\/p><h4 style=\"margin:24px 0 8px;\">Three or more years out<\/h4><p>The $3 million Quality of Earnings threshold is the one to prepare for, and the one that rewards preparation most. Clean books built over three years cost a fraction of what reconstructed books cost during diligence &mdash; and they hold their value when someone independent checks them.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-c4bb22d e-flex e-con-boxed e-con e-parent\" data-id=\"c4bb22d\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-54caeaa elementor-widget elementor-widget-heading\" data-id=\"54caeaa\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">IV. How to Prepare \u2014 From Either Side of the Table<\/h2>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-db0e9d2 e-flex e-con-boxed e-con e-parent\" data-id=\"db0e9d2\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-d6e365d e-con-full e-flex e-con e-child\" data-id=\"d6e365d\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1753a52 elementor-widget elementor-widget-heading\" data-id=\"1753a52\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">For Buyers<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b27eedc elementor-icon-list--layout-traditional elementor-list-item-link-full_width elementor-widget elementor-widget-icon-list\" data-id=\"b27eedc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"icon-list.default\">\n\t\t\t\t\t\t\t<ul class=\"elementor-icon-list-items\">\n\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-check-circle\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M504 256c0 136.967-111.033 248-248 248S8 392.967 8 256 119.033 8 256 8s248 111.033 248 248zM227.314 387.314l184-184c6.248-6.248 6.248-16.379 0-22.627l-22.627-22.627c-6.248-6.249-16.379-6.249-22.628 0L216 308.118l-70.059-70.059c-6.248-6.248-16.379-6.248-22.628 0l-22.627 22.627c-6.248 6.248-6.248 16.379 0 22.627l104 104c6.249 6.249 16.379 6.249 22.628.001z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Get prequalified by an SBA lender early<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-check-circle\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M504 256c0 136.967-111.033 248-248 248S8 392.967 8 256 119.033 8 256 8s248 111.033 248 248zM227.314 387.314l184-184c6.248-6.248 6.248-16.379 0-22.627l-22.627-22.627c-6.248-6.249-16.379-6.249-22.628 0L216 308.118l-70.059-70.059c-6.248-6.248-16.379-6.248-22.628 0l-22.627 22.627c-6.248 6.248-6.248 16.379 0 22.627l104 104c6.249 6.249 16.379 6.249 22.628.001z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Build your personal financial statement and bio<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-check-circle\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M504 256c0 136.967-111.033 248-248 248S8 392.967 8 256 119.033 8 256 8s248 111.033 248 248zM227.314 387.314l184-184c6.248-6.248 6.248-16.379 0-22.627l-22.627-22.627c-6.248-6.249-16.379-6.249-22.628 0L216 308.118l-70.059-70.059c-6.248-6.248-16.379-6.248-22.628 0l-22.627 22.627c-6.248 6.248-6.248 16.379 0 22.627l104 104c6.249 6.249 16.379 6.249 22.628.001z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Have a plan for how you\u2019ll run the business<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-5f072aa e-con-full e-flex e-con e-child\" data-id=\"5f072aa\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-68e258c elementor-widget elementor-widget-heading\" data-id=\"68e258c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">For Sellers<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ebf59ff elementor-icon-list--layout-traditional elementor-list-item-link-full_width elementor-widget elementor-widget-icon-list\" data-id=\"ebf59ff\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"icon-list.default\">\n\t\t\t\t\t\t\t<ul class=\"elementor-icon-list-items\">\n\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-check-circle\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M504 256c0 136.967-111.033 248-248 248S8 392.967 8 256 119.033 8 256 8s248 111.033 248 248zM227.314 387.314l184-184c6.248-6.248 6.248-16.379 0-22.627l-22.627-22.627c-6.248-6.249-16.379-6.249-22.628 0L216 308.118l-70.059-70.059c-6.248-6.248-16.379-6.248-22.628 0l-22.627 22.627c-6.248 6.248-6.248 16.379 0 22.627l104 104c6.249 6.249 16.379 6.249 22.628.001z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Normalize and explain financials clearly<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-check-circle\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M504 256c0 136.967-111.033 248-248 248S8 392.967 8 256 119.033 8 256 8s248 111.033 248 248zM227.314 387.314l184-184c6.248-6.248 6.248-16.379 0-22.627l-22.627-22.627c-6.248-6.249-16.379-6.249-22.628 0L216 308.118l-70.059-70.059c-6.248-6.248-16.379-6.248-22.628 0l-22.627 22.627c-6.248 6.248-6.248 16.379 0 22.627l104 104c6.249 6.249 16.379 6.249 22.628.001z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Fix legal or licensing gaps now<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-check-circle\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M504 256c0 136.967-111.033 248-248 248S8 392.967 8 256 119.033 8 256 8s248 111.033 248 248zM227.314 387.314l184-184c6.248-6.248 6.248-16.379 0-22.627l-22.627-22.627c-6.248-6.249-16.379-6.249-22.628 0L216 308.118l-70.059-70.059c-6.248-6.248-16.379-6.248-22.628 0l-22.627 22.627c-6.248 6.248-6.248 16.379 0 22.627l104 104c6.249 6.249 16.379 6.249 22.628.001z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Understand how your price and cash flow align with SBA coverage ratios<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-95693b9 e-flex e-con-boxed e-con e-parent\" data-id=\"95693b9\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-6def362 e-con-full e-flex e-con e-child\" data-id=\"6def362\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-684eb9c elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"684eb9c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-38ecbbf elementor-widget elementor-widget-heading\" data-id=\"38ecbbf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">V. Final Thoughts: SBA as a Tool, Not a Shortcut<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6bafc27 elementor-widget elementor-widget-text-editor\" data-id=\"6bafc27\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p style=\"margin-bottom:20px\">None of this makes a good business harder to sell. It makes a <em>loosely documented<\/em> business harder to sell &mdash; and it moves the advantage toward buyers who already own something like what you built.<\/p><p style=\"margin-bottom:20px\">Those buyers are reachable. They are just not the ones who find you on a listing site, and they do not compete against themselves. If the October 1 rules change who is best positioned to buy your business, the answer is not to accept a lower number. It is to make sure more than one of those buyers is looking at it.<\/p><p style=\"margin-bottom:20px\">Whether you are planning to buy or preparing to sell, <strong>we can help you get SBA-ready<\/strong> &mdash; with the right guidance and trusted lender connections.<\/p><div style=\"margin-top: 28px; padding: 20px 24px; background-color: #eef3f9; border-left: 5px solid #1B4F8A; border-radius: 4px;\"><p style=\"margin: 0 0 16px 0; color: #1a1a1a;\">Want to see how a deal&rsquo;s cash flow holds up against the new 1.25x floor? Use our calculator to run the numbers.<\/p><p style=\"margin:0;\"><a style=\"display: inline-block; background-color: #7A2A2A; color: #ffffff; font-weight: 600; font-size: 16px; padding: 14px 30px; border-radius: 4px; text-decoration: none;\" href=\"https:\/\/finance-check.amerivestgroup.com\" target=\"_blank\" rel=\"noopener\">Run Financing Check<\/a><\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-49816a7 e-flex e-con-boxed e-con e-parent\" data-id=\"49816a7\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2d80dee9 elementor-widget elementor-widget-heading\" data-id=\"2d80dee9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Not sure how the new SBA rules hit your number?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7fdb09cb elementor-widget__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"7fdb09cb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Let&rsquo;s schedule a confidential call and run your actual earnings against the 1.25x coverage floor &mdash; no pressure, just guidance.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-3a475df7 e-con-full e-flex e-con e-child\" data-id=\"3a475df7\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-39b5945f elementor-mobile-align-left elementor-widget elementor-widget-button\" data-id=\"39b5945f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm elementor-animation-shrink\" href=\"https:\/\/amerivestgroup.com\/buyers\/#buyer-form\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Request a Buyer Strategy Call<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>On October 1, 2026, the SBA changes how business acquisitions are underwritten. The coverage floor moves to 1.25x, projections stop counting toward it, and deals at $3 million and above pick up a Quality of Earnings requirement. Here is what it costs a seller \u2014 and which buyer it quietly favors.<\/p>\n","protected":false},"author":1,"featured_media":950,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"full-width-container","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[17,21],"tags":[23,37],"industry":[],"class_list":["post-893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-buyers","category-seller-articles","tag-financing-sba","tag-the-sale-process"],"_links":{"self":[{"href":"https:\/\/amerivestgroup.com\/en\/wp-json\/wp\/v2\/posts\/893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amerivestgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amerivestgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amerivestgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/amerivestgroup.com\/en\/wp-json\/wp\/v2\/comments?post=893"}],"version-history":[{"count":20,"href":"https:\/\/amerivestgroup.com\/en\/wp-json\/wp\/v2\/posts\/893\/revisions"}],"predecessor-version":[{"id":6469,"href":"https:\/\/amerivestgroup.com\/en\/wp-json\/wp\/v2\/posts\/893\/revisions\/6469"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amerivestgroup.com\/en\/wp-json\/wp\/v2\/media\/950"}],"wp:attachment":[{"href":"https:\/\/amerivestgroup.com\/en\/wp-json\/wp\/v2\/media?parent=893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amerivestgroup.com\/en\/wp-json\/wp\/v2\/categories?post=893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amerivestgroup.com\/en\/wp-json\/wp\/v2\/tags?post=893"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/amerivestgroup.com\/en\/wp-json\/wp\/v2\/industry?post=893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}